Allied Biscuit Co. is expected to generate a free cash flow (FCF) of $9,760.00 million this year (FCF! = $9,760.00 million), and the FCF is expected to grow at a rate of 21.40% over the following two years (FCF2 and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.82% per year, which will last forever (FCF4). If Allied Biscuit Co.'s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of Allied Biscuit Co.?
a. $235,875.90 million
b. $292,577.13 million
c. $283,051.08 million
d. $30,345.04 million
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Allied Biscuit Co. is expected to generate a free cash flow (FCF) of $9,760.00 million this year (FCF! = $9,760.00 million), and the FCF is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If you're 18, and want to go take the test for your permit would you have to wait the 6months to go do you license?
Answers (1)
Last month you introduced a new product to the market. Consumer d emand has been overwhelming and it appears that strong demand will exist over the long-term situation, management should consider the option to A. Suspend B. Expand C. Abandon D.
Answers (1)
Some credit card companies are making credit scores available to all of their customers on their monthly statements. What impact would you expect to see as a result of this change?
Answers (1)
Chase, Marla, and Enrique have been operating a chain of self-service laundries as a general partnership for many years. Marla declares bankruptcy. In most states, Marla's bankruptcy will: a. cause the partnership to declare bankruptcy. b.
Answers (1)
An advertisement emphasizes that if a consumer uses a certain deodorant he or she will not offend other people and will not cause problems in the workplace because of bad body odor.
Answers (1)
New Questions in Business
Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?
Answers (1)
A tip of $10 is best for which kind of service? A. a mover who delivers furniture to your new home B. a valet who parks your car at a restaurant C. a waiter at a fast-food restaurant
Answers (2)
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division.
Answers (1)
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.
Answers (1)
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar.
Answers (1)